Texas County & District Retirement System said it has approved a $150m (€135.9m) commitment to the Cerberus Real Estate Debt Fund.

According to sources, Cerberus is planning to raise $750m for the Debt Fund which is also being backed by the Teachers’ Retirement System of the State of Illinois with a $125m commitment.

The fund, which will be considering real estate debt opportunities in both Europe and the US, will target a gross internal rate of returns in the range of 10% to 13%, according to sources.

Cerberus will be looking at a variety of investment structures including mezzanine, first mortgages, performing loans,  commercial mortgage-backed securities and special situations.